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I would recommend getting the best rod and lines you can afford and anything for a reel. Reels largely are just to hold line. My problem with the entry level sets is that they include cheap fly lines which does a huge dis-service to the the fly fisherman. For streams/rivers I would recommend a 5wt setup, but if you are getting into steelhead you are going to want a completely different setup. Most of those guys are using spey rods which is a whole new ballgame. If I were getting started around So Cal and thought about fishing the Sierras and local salt I would get a 5wt and an 8 wt setup.
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